THE House of Representatives has endorsed for Senate approval a measure to enhance financial literacy among Filipinos through the Technical Education and Skills Development Authority (Tesda).
This, after House Bill (HB) 9292 secured an impressive 246 affirmative votes during the plenary session last week.
The legislation is designed to integrate a comprehensive personal financial literacy course into the curriculum of technical vocational institutions (TVIs) and TESDA training centers.
The primary objective of the bill is to empower students with fundamental knowledge and additional skills in wealth management and contingency planning. This initiative aims to equip them to handle their finances adeptly, make well-informed decisions as they enter the workforce, and master financial literacy as an essential life skill in their daily transactions and activities.
Speaker Ferdinand Martin G. Romualdez said that the enactment of HB 9292 (An Act Mandating the Inclusion of a Personal Financial Literacy Course in the Technical-Vocational Education and Training, or “TVET,” Curriculum) would expand opportunities and platforms for teaching personal financial literacy. Romualdez added the latter would strengthen financial education of Filipinos.
“Financial literacy is a precious skill that, unfortunately, few have,” the Speaker was quoted in a statement as saying. “Filipinos who are financially literate are more likely to avoid financial fraud, develop financial discipline, use debt responsibly, and save their money for education or retirement.”
The bill shows that TVIs and TESDA training centers shall provide the necessary financial education to tech-voc students while helping them learn and develop other practical tech-voc skills and competencies.
Key provisions of the measure include the mandatory inclusion of the Personal Financial Literacy Course (PFLC) in the TVET curriculum. The PFLC will concentrate on personal finance and adhere to policies, guidelines, and standards jointly set by TESDA, the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF), Securities and Exchange Commission (SEC), and the Insurance Commission (IC).
Graduation or course completion will require a passing grade in the PFLC. The course content encompasses various aspects of personal financial literacy, covering concepts like the time value of money, consumer behavior, debt management, savings and emergency fund development, investment planning, retirement planning, insurance planning, credit scoring, financial education, and effective utilization of digital payment platforms.